I created a local, referenced map package that includes a mosaic dataset layer. It displays at all scales when I open the package in ArcMap, but in Runtime it stops rendering when I zoom in past about 1:60,000: this makes it pretty useless for my application. I created another map package showing just the mosaic dataset and it behaves the same way. I also see the same behavior when I add the dataset as a dynamic layer.
Any idea why this is happening?